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Express Penalty Scheme Suspension Delaying Full Digital Number Plate Migration

Kamwokya Times by Kamwokya Times
July 21, 2026
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Express Penalty Scheme Suspension Delaying Full Digital Number Plate Migration
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Operations to clear the backlog commenced last week.

The Intelligent Transport Monitoring System (ITMS) says it has cleared a backlog of 6,000 digital motor vehicle registration number plates, weeks ahead of the deadline set by the Minister of Works and Transport, Fred Byamukama.

The increased production and issuance of digital number plates followed the minister’s intervention after widespread complaints from motorists and stakeholders over prolonged delays that disrupted vehicle registration and business operations.

The rollout of Uganda’s digital number plate system began in late 2023 with government vehicles before extending to motorcycles. In January 2025, it was expanded to include private motor vehicles, covering both first-time registrations and replacement of the old number plates with the new digital ones. A first-time vehicle registration costs 714,000 Shillings, while motorists replacing existing number plates pay 150,000 Shillings.

However, under the agreement between the government and the contractor, the cost of replacing old number plates was expected to be financed through revenue generated by the Express Penalty Scheme (EPS). The scheme was launched last year but was later suspended, leaving the contractor without the anticipated source of funding.

Steven Turyarugayo, the company’s publicist, says this has created financial challenges for the project. Two weeks ago, Byamukama inspected the digital number plate production facility at Kyambogo and directed the contractor to resolve all production bottlenecks by August 30, 2026, and restore a steady and reliable supply of number plates, particularly for first-time vehicle registrations.

The contractor, Joint Stock Company Global Security (JSCGS), agreed to meet the deadline. The latest development follows a meeting held last week between the Ministry of Works and Transport, key stakeholders and JSCGS to review the production challenges and agree on corrective measures.

The contractor said it had received a shipment of 100,000 digital chips, allowing it to prioritise first-time vehicle and motorcycle registrations while continuing to process applications for replacement number plates.

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The company attributed the delays to supply chain disruptions caused by the conflict in the Middle East. Production materials are sourced from Russia, Dubai and China, and officials say a shortage of one critical electronic component temporarily disrupted production.

Turyarugayo says the arrival of the missing components has enabled the company to eliminate the entire backlog of 6,000 pending applications. Following the latest consignment, Production Manager Austine Egesa says the factory is now operating at full capacity as it works to fully implement the minister’s directive and restore normal service delivery.

“Following the Minister’s intervention, production of new number plates has significantly accelerated. People are working like ants. The factory is operating at full capacity, and component supplies have stabilised,” Egesa said.

The company says it is committed to streamlining all operations and fully stabilising both first-time registration and post-registration (migration) services by August 30, 2026. According to statistics from the Motor Vehicle Registration (MVR) Department, more than 47,000 motorists have applied to replace their old registration plates with the new digital ones.

ITMS explains that the current production framework for post-registration services was originally designed to handle exceptional cases such as lost, stolen, damaged or defaced number plates. However, demand has surged as thousands of motorists voluntarily seek to migrate to the new digital plates, creating pressure beyond the system’s original capacity.

The company says large-scale migration for existing vehicle owners will commence once the government introduces a support mechanism for secondary vehicle registration. Despite the increased demand, ITMS says production for first-time vehicle registrations has remained stable.

“The facility currently has the capacity to produce approximately 2,500 number plates per day, translating into nearly 50,000 number plates every month. This is sufficient to meet the demand for newly registered vehicles,” Turyarugayo said.

To minimise future disruptions, the company says it has diversified its supply chain by rerouting shipments through Oman and Qatar, ensuring a more reliable and sustainable flow of components into Uganda-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com

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